Frequently Asked Questions

In 2006, the Global Fund Board of Directors approved a policy (Global Fund/B14/DP7)whereby high-performing grants could be extended beyond their initial term for a maximum of another six years. The policy was subsequently modified at the November 2007 Board meeting, Decision Point Global Fund/B16/DP8.

A major responsibility of CCMs is to "Select one or more appropriate organisations to act as the Principal Recipient(s) (PRs) for the Global Fund grant" (Clause 7 of the Global Fund Guidelines on the Purpose, Structure and Composition of the Country Coordinating Mechanism).Clause 8 of the Fiduciary Arrangements for Grant Recipients sets out the role of the PR as being legally responsible for program results and accountability. That document notes (Clause 9) that PRs must ensure that effective arrangements are put in place for: (i) Disbursement of funds to all implementing entities (sub-recipients)(ii) Procurement and supply management(iii) Monitoring and evaluation, including periodic reporting on program results and financial accountability to the Global Fund and the CCM.The full responsibilities of PRs are set out in the Grant Agreement entered into between the Global Fund and the PR.The PR implements the programme as described in Annex A (Programme Implementation Description) of the Grant Agreement. The annex outlines the programme details such as the goals, objectives, beneficiaries, strategies, planned activities, targets, and the budget. These details are determined by the CCM working closely with all stakeholders during the proposal development stage, and are submitted to the Global Fund for approval and funding.

The Global Fund does not have representation in countries that receive Global Fund grants; its offices are located in Geneva, Switzerland. The Global Fund hires a Local Fund Agent (LFA) to oversee, verify, and report on grant performance.
Selection of LFAAn LFA is selected by the Global Fund through a competitive bidding process after consultation with the relevant CCM. Under Clause 12 of the Fiduciary Arrangements for Grant Recipients, to avoid potential conflicts of interest with principal recipients for which they have oversight responsibility, LFAs must not be involved in the design and implementation of the funded programs.
Role of the LFAThe Global Fund webpage on LFAs sets out the key role of an LFA as part of the Global Fund’s fiduciary and performance-based funding arrangements.
The LFA works closely with the Global Fund and, in particular, with the relevant Fund Portfolio Manager, to provide the following services:
a. Work performed before the Global Fund signs a grant agreement with the principal recipient. This includes assessing the PR’s capacity to implement the grant, reviewing proposed budgets and work plans, and otherwise assisting the Global Fund in grant negotiations.

b. Work performed during program implementation. The LFA is contracted to independently oversee program performance and be accountable for the use of funds (known as verification of implementation). This includes reviewing the PR’s periodic requests for funds, undertaking site visits to verify results and reviewing the PR’s annual audit report.

c. Work performed with respect to the Phase 2 review. The LFA’s review of a grant as it approaches Phase 2 (Years 3 to 5 of a grant lifespan) is crucial in assisting the Global Fund to make its decision on whether to continue funding beyond the first two years.

d. Work performed with respect to grant closure. When a grant ends, the LFA is involved in assisting the Global Fund with closing the grant.

e. Ad hoc assignments undertaken at the request of the Global Fund, such as investigations relating to the suspected misuse of funds.
The LFA for Nigeria

CCMs are partnerships consisting of representatives from both the public and civil society sectors who coordinate the submission of one national proposal on the basis of priority needs. In addition, CCMs are responsible for overseeing the progress of program implementation … The CCM (is) a central pillar of the Global Fund’s architecture to ensure country-driven, coordinated, and multi-sectoral processes for leveraging and effecting additional resources … to fight AIDS, TB and malaria.

The Global Fund to Fight AIDS, Tuberculosis and Malaria (the Global Fund) was established in 2001 "to dramatically increase resources to fight three of the world’s most devastating diseases, and to direct those resources to areas of greatest need." The Global Fund was founded on the following set of principles and objectives:

To operate as a financial instrument, not an implementing entity

To make available and leverage additional financial resources

To support programs that reflect national ownership

To operate in a balanced manner in terms of different regions, diseases, and interventions

To pursue an integrated and balanced approach to prevention and treatment

To evaluate proposals through independent review processes

To establish a simplified, rapid, and innovative grant-making process and operate transparently, with accountability

The principles are fully described in the Global Fund’s Framework Document. As of November 2008, the Global Fund had committed $14.9 billion in 140 countries to support aggressive interventions against all three diseases. The Global Fund Web site (http://www.theglobalfund.org/en/) provides access to a wide range of resource material and reports on its activities.
The Global Fund strives to ensure that national resources already committed to a national program are not displaced (or duplicated) through funding from an approved proposal (i.e., it ensures additionality in funding support). Whereas the Global Fund does not require direct attribution of specific interventions to Global Fund financial contributions, that applicants for grants must provide a summary of the additional achievements or outcomes for the national program that will arise from the provision of Global Fund support.

Clause 8 of the Fiduciary Arrangements for Grant Recipients recognises that a PR may use a number of implementing partners or sub-recipients (SRs) for program delivery. Sub-recipients often play a pivotal role in the implementation of program activities and the management of grant resources. As sub-contracted entities they are critical for the timely achievement of grant results. Given the often considerable number of SRs under a grant and the significant proportion of the grant’s budget that SRs are managing, it is vital that the PR has adequate capacities, resources, and systems in place to select appropriate entities, to support them in accessing capacity building, as necessary, and to provide effective oversight over SR performance during grant implementation.
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